All Forum Posts by: Eric H.

hey Matt, we're in similar positions. I'll be looking to see the responses you receive. How did your driving for dollars work out?

@Account Closed said it best. You need individual policies that allow your LLC as a named insured. You may also list your LLC as additionally insured. For liablitiy, a commercial blanket or personal umbrella can both be sufficient.

When you get an insurance quote on the property the agent will run a Loss Information Summary, that report will tell you of any claims in the past several years. 

@Charles Wilson

@Jason Bott Is correct you will need coverage for the walls in, you will also want some loss assements coverage anytime there is a hoa or coa, and very limited contents, for your appliances. 

You will want dwelling policies and not condo policies, because with a dwelling policy you can choose to have only coverage for your limited structure and contents.

So we can conclude that:

• The majority of homes with physical distress in your area are locally owned by baby boomers. 
• Most absentee owners with homes in your area have homes in good repair.

It doesn't seem too me that there is a infer-able motivation factor here, but I think they are great data points to refine your marketing strategy by.

There are 4 reasons to require tenants to get renter's policies.

1) Liability, if your tenant is legally responsible for anyone's financial loss (injury, slander, property damage, etc) AND they do not have means, YOU may be pursued as additionally liable. 

2) Structure Coverage, your property improvements if damaged beyond wear and tear by your tenant may be covered by your tenant's liability coverage instead of your dwelling coverage.

3) Contents Coverage, not all Landlord policies are the same in the provision of contents coverage for tenants. Some landlord policies do provide limited coverage but it's not a great plan for YOU to provide coverage for them. If the tenant has contents that suffer loss because of a peril your policy pays for (think water backup that damages your floors and the tenants electronics or food spoilage due to power outage). If that tenant has a renters policy they will file and be reimbursed by their policy. If they don't have a renters policy they may or may not be able to collect from your Landlord policy or if they are bright from your Personal Liability coverage.

4) A person who has a problem getting renters insurance is a red flag. They may have a history of misrepresentation, excessive claims, or non payment. 

welcome to BP! I'm just getting started out in REI as well. If you need any eyes in San Antonio just give me a shout I'm all over the city.

Eric

great question, I'm subscribed for responses.

Welcome @Noe Garcia

claims may effect your policies in 3 ways and on two different levels.

Each seperate criteria that contributes to your premium is called a Rating Factor (RF), credit, claims history, length of time insured, distance to fire department, etc... As your RFs change over time your non discounted and non surcharged premium will adjust in positive correlation. It's not a 1 to 1 positive correlation as there are tiers of qualification that are based minimum thresholds across multiple factors. Having a claim will move the needle for at least one RF, where this really plays is when that move effects your tiering. 

Many policies will offer discounts (2) for being claim free, if you loose this discount your premium may increase. Similarly, having more claims can trigger a surcharge (3) which in addition to a higher base premium and a loss of discounts may significantly impact your net premium. 

The next way this claim nay effect you is that your personal claim history becomes useful RF data for ALL your properties even if you switch insurers, which I would not likely do after a claim unless I had to in order to maintain my cash flow or I was non renewed of course.